Is It Worth Using A Mortgage Broker For Your First Home?

Monday, April 03, 2023

This post is collaborative but all opinions are my own

If you’re in the market for a property or are just looking to finally get your own place, then the idea of searching around for a mortgage can be daunting. Most people can’t really pay for a house in its entirety which is why it’s common to take out a loan such as a mortgage. However, there are so many different terms and conditions, rates, and other considerations to keep in mind that it can get extremely overwhelming.

Photo by HiveBoxx

But there’s an easy way to simplify things: speak with a mortgage broker. While it might sound a little worrying to put your mortgage in somebody else’s hands, some fantastic benefits will help you secure a mortgage with good rates.

What is a mortgage broker?

A mortgage broker is essentially a professional that helps people secure mortgages. They assist you by navigating the legal landscape around mortgages, and they’ll help to find the best deals that are available to someone in your financial circumstances. They’ll take other considerations in mind as well such as your income, your marital status, and your credit history.

Benefits of using a mortgage broker

Using a mortgage broker can help in several different ways

  • You could save a lot of money because a mortgage broker will help you find the best deals. Instead of going with a mortgage that has bad rates, a broker will help you perform searches, speaking with multiple lenders about your situation to help you find the lowest rates.
  • You may get better interest rates thanks to your broker negotiating with the lenders. This can help you save a lot of money over time.
  • It can speed up the mortgage process. You’re more likely to get approved faster when you work with a mortgage broker even if you have a bad credit score or low income. They’ll find lenders that are willing to work with you so that you have a high chance of being accepted the first time around.
  • They’ll help you with all of the legal responsibilities. This includes doing all the paperwork and helping you understand things you haven't come across before.

How do you find a mortgage broker?

Finding a mortgage broker usually involves asking around. Your friends and family members will likely have some recommendations if they’ve worked with a mortgage broker before. However, if they haven’t, you can always check to see if there are local mortgage brokers near you. Make sure you check that they’re experienced mortgage brokers with happy past clients. If they don’t seem trustworthy, then it’s best to avoid them.

Remember that once you’ve found a mortgage broker, you’ll need to provide them with some information about your financial situation. This can include your debts to ensure you’ve started repaying your loans, details about your assets, and other financial documents. This is to help ensure that you can find the best mortgage deal for your needs, but also give you a high chance of being accepted by those lenders.

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